Install Parallels Desktop on Macintosh HD & Install and download all on External Drive

Hey everyone!

I hope you're doing well. I just downloaded the free trial to test everything first before buying Parallels Desktop (Private use (gaming, coding in VS)).

I installed Virtual Machine only on my macOS's System Drive (Macintosh HD) and now I want to use Windows on my
External Drive only for storage and everything Windows related (Download files there, Install programs run apps & games etc).

How would I have to set it all up right away from the start to ensure it's all correctly set up and ready to go?
I'm a Windows 10 user so Windows 11 is all new to me (new interface is a little confusing).

Here are my specs for better understanding if needed:

• Macbook M1 Pro 14 inch 2021, 32GB RAM, Ventura 13.3.1, 1TB Macintosh HD (System Drive).
• My External Drive is actually a JetDrive Lite 330 (which is a SD-Card with 1TB).

In the Attachment are also Pictures for better understanding.

This way I can mentally separate macOS and Win the best.

I appreciate your time and thank you already for your help.